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$1,000,000 CASH OUT, FIXED INTEREST RATE, 30 YEAR LOAN

The Mobile Home Park Fix Rate Refinancing Loan of a Murrieta, CA mobile home park (Riverside County) was completed on September 1, 2006 for $3,175,000 Vince Reynolds and Norman Sangalang of MHRV Advisors acted as loan brokers on this transaction.

The park is an all age, four star park, which has  71 spaces  on 12.52 acres.  Completely renovated and remodeled in 2005 and 2006.  Amenities include a pool, Jacuzzi, clubhouse, playground and gated entrance.  The new $3,175,000 note is at 6.3% and fully amortized over 30 years.

“The new fixed rate loan replaced an adjustable rate loan that we put on the property when the owner acquired it in 2004.”  Reynolds stated, “This new loan is fully amortized for 30 years and allows the borrower to borrow additional fund up to 70% LTV if needed.”  Norman Sangalang commented, “We have several clients with loans that have huge prepayment penalties or defeasance making their parks almost un-sellable or impossible to refinance.  With this loan program the borrower gets the best of both worlds – a long term low fixed rate and the ability to add additional financing if needed.”

“If the borrower ever wants to sell this park he could borrow up to the 70% LTV max and the new owner would then assume that mobile home park loan.  Given that the interest is at 6.3% on the majority of the loan it should be a great scenario, if the need arises.” said Reynolds.

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